If my older daughter will receive the assets of her sister’s trust at its termination, can she decline the assets iin favor of her son?

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If my older daughter will receive the assets of her sister’s trust at its termination, can she decline the assets iin favor of her son?

The trust terminates at the death of my younger daughter with the assets going to her older sister, if still living. If her older sister is deceased at that time, the assets are to go to her son by the terms of the trust agreement.

Asked on May 21, 2011 under Estate Planning, Texas

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

The question you are asking is can the beneficiary of a trust refuse the trust assets upon distribution.  The answer is maybe.  It really depends on how the trust is written as well as your local law on the matter.  Something known as a qualified disclaimer in a trust can allow a beneficiary to refuse all or some of the trust assets and as long as the trust is written so that the contingent beneficiary - her son - can take it and the law allows it, then he would get it.  Generally if the law allows your daughter to refuse the assets the law treats her as if she had pre-deceased her son.  So in essence it is the same thing.  Ask an attorney to review the trust.  Good luck.


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